Insurance and registration800Meals while away from the office ($200 relates to out-of-towntravel)420Parking during employment duties300Interest on loan to acquire car3,900During the year, the employee drove 26,000 km, of which 14,000 were for employment duties and theremaining 12,000 were personal.Analysis:First of all, note that some of these expenses are related to both personal and employment activities (e.g.,gasoline). Others are related only to employment activities (e.g., parking). Also, meal costs were entirelypersonal, as the employee had to eat whether she was working or not. Remember, however, that mealcosts while travelling out of town can be deducted, provided that the time away is greater than 12 hours.The cost of an automobile can be deducted in the form of capital cost allowance (see Chapter 6). Thedesignated capital cost allowance rate for automobiles is 30%, except in the first year when it is only 15%.